Palantir Stock sees worst day since going public



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December 2 (Reuters) – Shares of Palantir Technologies Inc recorded their worst dip on Wednesday, ending the meteoric rally the Peter Thiel-backed company experienced in November as the stock extended its losses for a fourth straight session .

Shares of the U.S. data analytics firm, known for its work with the Central Intelligence Agency and other government agencies, fell 11.9% to $ 22.61 in morning trading.

Morgan Stanley’s research arm, which was the primary financial advisor on Palantir’s direct listing, downgraded the stock to “underweight” from “even weight” on Wednesday, citing an overvalued valuation relative to its software peers.

“We believe that much of the incremental movement since the third quarter results is likely related to factors outside of fundamentals, including strong long-term retail interest squeezing strong institutional short interest,” he wrote. Morgan Stanley analyst Keith Weiss.

The stock, currently valued at over $ 39 billion, traded for most of the last month in the dark, climbing 167%.

In November, Palantir exceeded market expectations for both sales and earnings in its first quarter as a public company and raised its revenue forecast for 2020, boosted by major government and aerospace contracts.

Last Friday, Palantir fell sharply after Citron Research found out about the title, calling it a “ full casino. ” (Reporting by Munsif Vengattil; Editing by Shinjini Ganguli)

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